Consumer Protection Laws and Your Rights As A Borrower
Fair Housing Act
The Fair Housing Act is part of the Civil Rights Act of 1968. The Fair
Housing Act declares a national policy of fair housing throughout the
United States. The law makes illegal any discrimination in the sale,
lease, or rental of housing, or makes housing otherwise unavailable,
because of race, color, religion, sex, handicap, family status, or natural
origin.
Fair Credit Reporting Act
The Fair Credit Reporting Act is designed to promote accuracy, fairness
and privacy of information used in the process of granting credit. All the
information in your personal credit history is supplied by public record
sources, credit grantors and others to credit reporting agencies. This act
gives you specific rights in dealing with these agencies. You may request
a free copy of your credit report from one of the below agencies within 60
days of the unfavorable action.
Equifax/CBI P.O.Box 740256
Atlanta, GA 30374 800-378-2732 or 800-685-1111
http://www.equifax.com
Trans Union Corporation
P.O.Box 390 Springfield, PA 19064 800-888-4213
http://www.transunion.com
Experian/TRW 701 Experian Pkwy P.O.Box 949 Allen, TX 75011 800-422-4879
http://www.experian.com
Equal Credit Opportunity Act
The Equal Credit Opportunity Act ensures that all consumers are given an
equal chance to obtain credit. This does not mean that all consumers who
apply for credit receive it: Factors such as income, expenses, debt, and
credit history are all considerations for creditworthiness. This law
protects you from a creditor discouraging you from applying because of
your sex, marital status, age, race, national origin, or because you
receive public assistance income.
Real Estate Settlement
Procedures Act (RESPA)
In 1974, the Real Estate Settlement Procedures Act (RESPA) was enacted to
ensure that buyers are informed regarding the amount and type of charges
they will pay at closing. This was created to ensure that borrowers
throughout the country are provided with greater and more timely
information on the nature of the costs associated with getting a mortgage
loan. Federal regulation requires that within three days of your initial
loan application, you receive a disclosure of estimated settlement costs
on what is know as a "Good Faith Estimate". RESPA was also created to
regulated the amount of money borrowers are required to place in escrows
for taxes and insurance.
Truth-In-Lending Act
The Truth-In-Lending Act is implemented by Federal Reserve Regulation Z
and requires that lenders disclose the annual percentage rate (APR) of
interest and finance charges imposed on consumers. The intent of this act
is to help borrowers understand loan transactions, and to assist you in
comparing loans offered by different lending institutions.
Fair Debt Collection
Practices Act
The Fair Debt Collection Practices Act protests consumers from harassment
and intimidation by debt collectors. It establishes a nationwide system
for controlling agencies that collect other companies' overdue accounts.
The Federal Trade Commission is responsible for enforcing the Fair Debt
Collection Practices Act.